Comments

Interesting and I understand about relationship selling but at some point you have to ask for the order. Or do you just wait until they ask you can I give you my business?

Posted by Jim Jackson at August 25, 2009 10:27 AM

I agree with Jim - there does come a point where you have to close and talk about a deal - hopefully with something a bit better than "would you like that in Red or Black".....

At the end of the day every person in sales has to balance meetings that produce actual with other outcomes - but I do think Steve is on the ball here though in terms of building that relationship - and I think it's a balance that so often goes the other way.

Posted by PaulH at August 25, 2009 10:36 AM

I think the point that Steve was trying to make is that folks tend to just look for the immediate sale, but give little (or no) thought to nurturing the relationship long-term. Build the relationship, and along with it will come trust. You still have to make the ask sometimes, but with trust it will sometimes come to you (along with referrals).

Given that it takes more resources and energy to attract new customers than to retain the ones you have, I agree that "going for the close" shouldn't always be the goal.

Posted by Melissa at August 25, 2009 11:36 AM

I've got to call B.S. on this one. I've employed many salespeople over the years and the thing that separated the great ones from the good, mediocre, and bad ones was their ability to close. I've had salespeople that were very likable and knowledgeable and succeeded in winning people over and getting them to like them - but then never got an order.

A lot can happen during the courtship that you're suggesting we engage in...budgets get slashed, people get fired, companies get acquired, etc. In sales, time is your enemy and you need to close as soon as the deal is closable, but not sooner.

Posted by Adam at August 25, 2009 12:02 PM

It is about building a real relationship longer term. People do remember to look at your website, or to call you, if you find natural ways to remain in touch. At least in my experience that makes sense for services. Maybe selling a product is different. The "plaid jacket" push to close the sale approach turns a lot of people off. (Myself included!)

Posted by Joy at August 25, 2009 3:29 PM

Steve - the common theme in your 3 examples and indeed any successful relationship in my opinion is that the person 'likes' you as much, if not more, than what you actually say. Its as simple as that as far as I'm concerned.

Posted by Trevor Gay at August 25, 2009 6:39 PM

Steve,

I agree. Relationship building is so important to selling and sometimes the sales call needs to be about the client, listening, and no agenda. How about just saying thank you over a cup of coffee?

I've worked with companies that have pushed for quotas, volume, and high pressure sales. Most clients don't care for it and many salespeople will cut corners to "look" good.

In my sales career, I've even turned clients away; i.e., anti-close, if I didn't believe that our goods and services weren't a good fit. Clients truly begin to trust you when the relationship goes beyond a "close".

I had a referral today and landed some business. Even though the client told me who referred them, I have no idea who the person was. I will typically buy my referring clients a simple gift card to Starbucks or somewhere else. I will seek this person out and thank them.

I like your post and agree with your philosophy...I don't call BS, as your tools, applied well, will bring future business. If salesreps are likeable and winning clients over, there may be something else wrong with price or perception of the company selling a product or service. I've found that those types of reps play by the rules and don't cut corners or margins. The dominant "A" has a tendency to bend, break, cut corners, and leave a mess after they leave a company; even in the midst of their apparent success in closing sales...many times the company can't deliver on the empty promises of the "high profile" rep. Some of these reps can cause a very expensive clean-up, even though their numbers and closings look good.

That last paragraph almost described our government to a "T".

Posted by Scott Peters at August 25, 2009 7:49 PM

Ah ... did I ever say you shouldn't ever go for the close? Of course not! The point is that most sales conversations don't end with closing a sale ... what makes these sales conversations successful is if your relationship is advanced. Have enough of these relationship-building encounters and ... you (and your customer) will be ready for the close.

Posted by Steve Yastrow at August 25, 2009 10:06 PM

Good post Steve. If you put the groundwork in place then closing the deal 'should' be easy as you've established enthusiasm, dealt with all possible objections etc. And of course the prospect doesn't feel uneasy at any hardsell tactics, the relationship is one of partnership rather than conflict. That's gotta be a good thing.

Posted by Adi @ The Management Blog at August 26, 2009 5:37 AM

Steve has this right. In the past year, I must have interviewed 50 sales teams for a series of 'inside the win' stories. And in virtually every case there never was a hard 'close.'

These corporate sales were built a slice at a time, as a natural outcome of conversations about the client's issues, and possible fixes. Every contact left the customer a little closer to 'deciding' on a solution.

Razzle-dazzle closing techniques and killer proposals and pestering had nothing to do with it. (And the sales teams even admitted that.)

Posted by Walt Kania at August 26, 2009 10:39 AM

Steve,

Another story to provide credibility to what you're saying. I went to the local Ford dealership to have my brakes examined; in fact, the vehicle had to be towed because there were no brakes on an F-150. Back in April, the dealership did a front brake job with new rotors---I'd only put 2000 miles on the vehicle since the job was done (they claimed they warranty the work up to 12,000 miles). I climbed under the vehicle and inspected the brakes. The leak was coming from the right front housing and was beyond the line in the caliper. I figured they may have crimped the connection at the caliper or something when they did the service. I took pictures too.

The sales tech, a hard pushing, sell 'em what they don't need jackass, informs me that the leak is from the line. I stated, "Is that right?...well you guys did a service 2000 miles ago and now you want me to pour another $250 in a line replacement?"

I played stupid. After the salesrep tries to convince me that the line may have gone bad because of weather, squirrels, or whatever, I broke the news to him. I informed him that I had pictures taken this morning and there wasn't a leak in the line and he really needed to improve his communication skills with the tech. He then retreated and stated, "Well, I'm just basing my estimates off what the tech told me." I then informed him his tech was full of s^&t and that I'd done some break jobs myself. He called me back and we settled on a new price. He then informs me that the tech stated there were "micro" cracks in the line and it would be wise to replace the line to the right side.

What a load of s&^t!!!!! As long as American car companies (granted...this is one example) continue to rip off clients and sell them extended warranties that don't cover much and go for the close on what clients don't need, they won't compete with my money.

In the same breath, the local Acura dealership in my market is just as awful and run with the same tactics. I wish the Japanese would send their own people over to run their operations.

Posted by Scott Peters at August 26, 2009 10:58 AM

Very interesting read, I would agree that it is absolutely necessary to build that relationship before you pounce on them and ask them to open their wallet. I also think when exercising discretion this way the clients feels more comfortable and will be willing to see what you have to offer and know that you care about them as an individual.

Posted by Promotional Products at August 26, 2009 3:21 PM

So ... what % of your sales conversations are designed to close a deal, and how many are purely for relationship building and moving you closer to an eventual close?

Posted by Steve Yastrow at August 26, 2009 4:55 PM

BTW ... I really like this discussion. Good stuff!

Posted by Steve Yastrow at August 26, 2009 4:58 PM

Steve - My theory is that customers are far smarter than poor salespeople think. It is not a game of knowledge over ignorance. It should be a meeting of minds where both parties are equal. I love Gary Hamel's words:

"Customers are more cynical – they can smell bullshit a mile away"

viagra with prescription uk The least effective salespeople put themselves on a fictitious 'higher' level than their customer

This a good discussion - thanks :-)

Posted by Trevor Gay at August 26, 2009 7:29 PM

Love the quote...

What I find interesting Steve, at least in my sales experience, is that many clients will let you know when they're ready to close a deal. Most good reps will understand a client's inventory position, schedule, and distribution; communication becomes critical as jobs and orders are being awarded.

When I'm bidding against other companies, I will typically be more interested in "award" dates and feedback from clients. I love when the competition is good and a client splits a deal with me and someone else; that makes me work harder to keep my foot in the door and business happy.

Many intelligent clients will keep a few fish in the pond to keep service and expectations high. When I was in the home building industry, some builders would keep two suppliers and rotate jobs between us, which kept selling very interesting. We didn't have a choice but to stay on our tippy toes.

I know that a lot of theories and postulates are tossed around on this blog, but when the competition is very good and clients have choices (and communicate such) that's when selling is most rewarding. Kinda like the Colorado Rockies over the past couple of games, they had to work hard as a team to win in extra innings. In my opinion, those are the most rewarding wins/closes.

Posted by The Joker at August 26, 2009 9:26 PM

My firm belief and personal tactic for ages. My peers in the automotive business are all surprised and horrified when they witness my tactic live, but it has always worked for me and I completely stand by it.
Plus, and this is a big plus, it is a fool-proof way of keeping customers faithful, coming back and power-referencing you in this ridiculously agressive-competitve sales area.
Sounds counter-intuitive in auto sales but twenty years success is no mistake.

Posted by Miguel André at September 1, 2009 4:04 PM